Following the district court’s previous order granting a motion to compel against Fujitsu, and Fujitsu’s unsuccessful appeal to the Federal Circuit, the district court ordered sanctions in the form of a civil penalty. As the district court explained, the civil penalty was designed to provide an incentive to motivate the Fujitsu Entities to comply with the district court’s orders.

The district court was less than impressed with Fujitsu’s response. “After stalling for months following Judge Cole’s 7/25/2014 order with meritless objections, overruled by this court on 8/19/2014, and an even more meritless mandamus attempt denied by the Federal Circuit yesterday, Fujitsu’s counsel cavalierly concludes ‘Fujitsu’s Response’ with ‘Fujitsu expects to have the translations ready for production by Friday, October 10, 2014.’
As a result, the district court stated that “[d]iscovery is scheduled to close on October 27, 2014. ( The conduct of the Fujitsu Entities, and that of their counsel, has unreasonably multiplied these proceedings. Yet they contemptuously continue with that conduct.”

The district court then ordered the civil penalty to stay in effect, with doubling and compounding added as an additional incentive. “The civil incentive penalty (“CIP”), which is imposed because of the Fujitsu Entities’ continuing contemptuous recalcitrance, will remain in effect, doubling and compounding each day at 4:00 CDT until the Fujitsu Entities comply and are no longer in contempt. A chart of the CIP that will be imposed by and including after 4:00 p.m. CDT on October 10, 2014, the date the Fujitsu Entities now say they will comply, is as follows:”

Date After 4:00 p.m. Imposed CIP Accumulated CIP 10/7/2014 $4,000 $4,000 10/8/2014 $8,000 $12,000 10/9/2014 $16,000 $28,000 10/10/2014 $32,000 $60,000
The district court then ordered the penalties to stay in place until Fujitsu ended its “contemptuous conduct. “Based on ‘Fujitsu’s Response,’ the Fujitsu Entities are apparently unfazed by what must to them be the monetary insignificance of the CIP, which will continue to increase and accumulate each day both before and after Friday, October 10, 2014, until the Fujitsu Entities end their contemptuous conduct and comply with the court’s orders.”

Stan Gibson, an experienced technology and IP trial lawyer, represents inventors, manufacturers, owners and others in litigation centering on complicated technology. Stan's practice is national in scope and he represents both plaintiffs and defendants and has litigated dozens of cases on behalf of his clients, taking many of them to trial. Although most cases settle, Stan's ability to take cases to trial enhances their value and drives favorable verdicts and settlements. Contact him at 310.201.3548 or SGibson@jmbm.com.

Greg Cordrey, an experienced patent litigator and former flight test engineer, represents a wide range of industries including medical device, computer, e-commerce, semiconductor, automotive, aircraft, and consumer products. He has litigated patent cases nationwide and has practiced before the Federal Circuit and the U.S. Patent and Trademark office as a registered patent attorney with experience in concurrent litigation and patent reexamination proceedings. Greg is recognized as one of the "Best Lawyers in America" in IP Law, as well as a "Super Lawyer" and "Rising Star." Contact him at 949.623.7236 or GCordrey@jmbm.com.

Rod Berman is recognized by the Daily Journal as one of the top 30 intellectual property attorneys in the State of California, and by the Los Angeles Business Journal as one of the top 100 attorneys in Los Angeles. Rod's practice focuses on patent, trademark, copyright, unfair competition and internet responsibilities and includes counseling, litigation, opinions, licensing and prosecution. In addition to being a registered patent attorney, Rod is a court-recognized expert in patent and trademark law, and has successfully argued before the Federal Circuit. Contact Rod at 310.201.3517 or RBerman@jmbm.com.

Andrew Shadoff, is a litigation associate who has assisted in prosecuting and defending patent infringement lawsuits involving mechanical devices. He has drafted successful summary judgment motions and pretrial motions in limine, and has assisted with trial and witness preparation. Contact him at 310.712.6856 or AShadoff@jmbm.com.

Joe Mellema's practice focuses on litigation in federal and state courts, including the protection and enforcement of intellectual property rights, and business and commercial disputes. He has handled patent, trademark, copyright, trade secret, unfair business practices, antitrust, and business and commercial lawsuits in all phases of litigation and arbitration. In addition to a law degree, he has dual degrees in electrical engineering and physical sciences, and was formerly a systems engineer at Raytheon Company. Contact him at 949.623.7232 or at JMellema@jmbm.com.

Rachel Capoccia

Rachel Capoccia focuses on technology-based litigation and counseling, with an emphasis on patent litigation, copyright litigation and other technology-related matters. Her legal experience is complemented by 10 years working at IBM as a software engineer before law school, during which she led a team of engineers who developed computer graphics software and computer aided design systems. She represents clients in all phases of patent infringement matters involving diverse areas of technology. Contact Rachel at 310.201.3521 or RCapoccia@jmbm.com.

Jessica Newman is a litigation associate, and a member of JMBM's Patent Litigation Group. She is involved in all aspects of litigation and has assisted in representing clients in a variety of industries with regards to patent infringement and copyright infringement issues. Contact her at 310.785.5372 or JNewman@jmbm.com.